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The Accounting treatment of PurePlay® Instruments is straight forward. The Sales of Proven and Probable Reserves must be deducted from the Proven and Probable Reserves and each sale must be reported in Sales at the spot price at which the sale took place. The cash received for sales goes to the Bank Account.

The accounting principles of “Matching Sales with Cost of Sales” and “Accrual when the Cost of Sales obligation is incurred at the date of Sales while the actual cash flow for the Cost of Sales will only take place in the future” must be applied in respect of the obligation to extract, refine and deliver the Reserves sold. Thus Cost of Sales must be raised at a value equal to the Cash Cost of producing the quantity of commodity sold from Proven and Probable Reserves and a Liability for Extraction, Refinement and Delivery must be created in the Balance Sheet to contra the Cost of Sales in accordance with the “Accrual” accounting principle. Here is an example of a Sale of 100 ounces of gold sold spot at $1400. The Producer’s Cash Cost per ounce is $600. The Gross Profit is transferred to a “Deferred Profit Reserve”. The Cost of Sales must be marked-to-Cash Costs per oz annually and adjusted annually together with the “Deferred Profit Reserve”.

Patents and Trade Marks

The Intellectual Property of PurePlay Holdings (Pty) Ltd is protected by world-wide pending Patents.

Trademarks awaiting registration are PurePlay™, Nature’s Vault™, As Good as Gold™ and Sp☼t True Value™.

Contact Details

5 Jan Smuts Avenue,Winston Park
Durban, 3610,South Africa


Tel: +27 31 7670156
Cell: +27 82 4515864
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